February 19th, 2008

- ANC President Zuma corruption trial to start in August, will preoccupy him; may not succeed Mbkei in 2009

- also is about to take a 5th wife => disagreements over who will be the first lady

- anything that is seen to be anti-Zuma = ZAR positive

- Qatar Investment Authority buying nearly $15bn in stock of CSFB

- Shiekh Hamad bin Jasim bin Jaber Al-Thani is PM, Foreign minister, and CEO of QIA

- INR: Shortage of dollars pushed spot higher and onshore fwd pts lower

- HKD: swaps bid as HKD rates firmer after Joseph Yam's article saying HK experiencing real negative IR => no downside in HKD rates

- US - HK interest rate differential should narrow

- AUD policy minutes showedf almost raised rates by 50-bp vs. 25bp; even at 7% still room to raise rates

- Chinese inflation at highest levels in 11 years;

- Yuan traded at 7.1580 from 7.1623; highest reference rate since peg was scrapped

- CPI at 7.1% vs. 6.5% in Dec; Trade surplus in Jan higher than expected; money supply highest in 20 months

- SGD: attacking 1.4100, also getting support from AUD strength = Singapore strength

- Singapore NoDX rose for first time in 3 months as petrochemicals helped offset declining electronics and pharmas

- up 2.8% vs. down 4.5% in Dec; mktexp was down 5.7%

- Onshore THB falling to 32.50 as all of Asia strengthening

- Final list of 76 appointed senators will be submitted to Election Commission today